Dana Inc (DAN)

Number of days of payables

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		5.85	5.47	5.27	5.35	5.50	5.37	5.29	5.18	5.48	5.54	5.21	4.74	5.28	4.20	6.42	5.35	5.13	6.46	5.76	5.25
Number of days of payables	days	62.39	66.74	69.31	68.25	66.31	67.98	69.00	70.52	66.60	65.88	70.02	77.00	69.15	86.86	56.83	68.23	71.11	56.52	63.35	69.51

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.85
= 62.39

Dana Inc's number of days of payables have shown a decreasing trend over the past four quarters, from 74.79 days in Q1 2022 to 66.38 days in Q4 2023. This indicates that the company is taking fewer days to pay its suppliers and vendors.

The decrease in the number of days of payables may suggest improved working capital management, potentially resulting in more efficient use of cash flow. However, a significant reduction in days of payables may also indicate stricter payment terms with suppliers, which could potentially strain relationships with key business partners.

Overall, Dana Inc's decreasing number of days of payables reflects a positive trend in managing its accounts payable effectively. It is important for the company to strike a balance between optimizing cash flow and maintaining healthy relationships with suppliers to ensure sustainable liquidity and operational efficiency.